Multiple Borrowing Rises as SACCOs Increase in Ntungamo

What the report says

Ntungamo district authorities are expressing concern that the growing number of SACCOs, banks and microfinance institutions is making credit easier to access, but also contributing to multiple borrowing and loan defaults. According to Nile Post, the issue has become more visible in Ntungamo Municipality and surrounding trading centres, where new financial service branches have expanded residents’ options for savings and borrowing.

The district commercial officer, Ezra Aryanyujuka, said some borrowers are taking loans from several institutions at the same time and then struggle to repay them. He warned that while the financial sector’s growth has brought services closer to people, it has also encouraged debt habits that can become unsustainable. Aryanyujuka urged SACCOs to strengthen borrower checks and expand financial literacy efforts so residents better understand the risks of excessive borrowing.

Ntungamo Resident District Commissioner Miriam Kagaiga Mugisha supported licensed institutions that are helping local businesses, but raised concern about unlicensed money lenders. She said some lenders are charging very high interest rates and authorities are preparing action against those operating without licences. The article also notes broader concerns about unregistered businesses in the district, showing that officials are looking at both credit access and regulatory compliance as they respond to the issue.